Related party transactions

6 Months Ended

Jun. 30, 2012

Related party transactions

12. Related party transactions

For the three and six month periods ending June 30, 2011, the Company paid consulting fees of $25,875 and $53,901, respectively to a company controlled by the former Chief Financial Officer of the Company for accounting and corporate compliance services. The Company’s former Chief Financial Officer resigned effective March 18, 2011, but remained as Corporate Secretary until just prior to the Annual General Meeting on June 5, 2011.

On May 19, 2012, the Company entered into a consulting agreement with its former Chief Executive Officer for a term of twelve months. Under this agreement the former Chief Executive Officer will provide advisory services from time to time to the Company. For both the three and six month periods ending June 30, 2012, the Company paid consulting fees of $21,511 to the former Chief Executive Officer under this agreement. As of June 30, 2012 the remaining amount due under the agreement was $132,353.

Included in accounts payable and accrued liabilities payable, amounts payable to directors and officers at June 30, 2012 and December 31, 2011, were $34,579 and $12,761, respectively.

These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.